Analysts: China's economy grew slower in 2020 than it has been in 4 decades
The Chinese central bank wants to continue to support the economic recovery from the virus consequences. Monetary policy will be more flexible, more targeted and more appropriate this year, said Vice-Governor of the central bank, Chen Yulu, at a press conference on Friday. Price stability will be in the foreground. However, there should not be any major changes to the previous approach. It was not clear which of the adjustments the central bank could use.
According to economists, China's economy grew more slowly last year than it has done in around four decades because of the corona pandemic. According to a survey of 13 financial institutions by the AFP news agency, the gross domestic product (GDP) of the world's second largest economy grew by only around 2.0 percent in 2020 – after 6.1 percent in 2019. This means that in 2020 China recorded the lowest growth rate since the economic reforms of the 1970s.
The new virus was first registered in the People's Republic a good year ago. With strict measures such as the cordoning off of entire cities and mass tests, the country had brought the infection rate under control by spring. In the past few days, several new sources of infection have been discovered, to which China once again responded with strict measures.
China's economy has largely recovered from the virus' effects thanks to lockdowns and emergency aid to businesses. China is now likely to be the only major economy in the world to even close the year with economic growth.